Changes to tax credits: calculate what it will mean for your family
Changes to tax credits came into effect on 6 April 2012. Families with high childcare costs and couples working from 16 and 24 hours a week between them are most affected.
The tax credit calculator shows that a family with a stay-at-home mum and a dad working part-time on £19,000, a 12-month-old child and a 4-year-old will gain £191 from changes in the personal allowance by April 2013, but lose around £4,500 – 24 times as much – from tax credit changes.
A two-earner family (combined income £40,000) with two children and childcare costs of £300 a week will gain the maximum possible from the personal allowance increase (£381) but still lose six times as much (£2,312) from tax credit changes.
The HMRC has detailed information about all the changes to tax credits.
Use the calculator (below) to work out how your family's income will be affected. (Thanks to the TUC for providing it.)